Home / Knowledge / News / Apparel/Garments / Apparel retailer Wet Seal shuts down 338 of 511 stores
Apparel retailer Wet Seal shuts down 338 of 511 stores
08
Jan '15
Specialty womenswear retailer, The Wet Seal said it was closing 338 retail stores or around 66 per cent of its store count, effective on or about January 7, 2015.

The apparel retailer decided to close the stores after assessing its overall financial condition and its inability to successfully negotiate meaningful concessions from its landlords.

The store closures have resulted in the termination of approximately 3,695 full and part-time employees.

Wet Seal estimates that the 338 retail stores which were closed represented approximately 48 per cent of its net sales for the nine months ending on November 1, 2014.

Following the store closures, the Company expects to operate approximately 173 retail stores and its internet business.

The retailer expects to incur estimated pre-tax charges of between $5.4 million to $6.4 million, including costs associated with inventory write-off, asset impairments and employee terminations.

Charges associated with inventory write-off are estimated to range from $2.5 million to $3.5 million.

While, charges associated with asset impairments, consisting primarily of write-offs of fixtures, furniture and equipment at the impacted stores are estimated to be approximately $2.2 million.

Charges associated with employee severance and other one-time termination costs arising from the store closures are estimated to be approximately $0.7 million.

“Such estimates do not include any claims or demands which may be made by the landlords of the impacted stores for unpaid rent or otherwise,” Wet Seal said.

Wet Seal informed that the charges are estimates and the actual charges may vary materially based on various factors, some of which may be beyond its control.

CEO Ed Thomas said, "This was a very difficult decision to make, but after reviewing many other options, our financial condition leaves us no other alternative than to close these stores.”

“This is an extremely difficult time for the entire Wet Seal team, and we are doing everything we can to protect the interests of all of our stakeholders, including our employees,” he added. (AR)

Fibre2fashion News Desk - India


Must ReadView All

Vietnam’s textile & garment exports earn $7.3 bn in Q1

Textiles | On 20th Apr 2018

Vietnam’s textile & garment exports earn $7.3 bn in Q1

Vietnam earned $7.339 billion from textile and garment exports in the ...

Uganda yet to exploit AGOA benefits: US envoy Malac

Apparel/Garments | On 20th Apr 2018

Uganda yet to exploit AGOA benefits: US envoy Malac

Uganda is yet to take full advantage of the Africa Growth and...

Courtesy: KBR, Inc

Textiles | On 20th Apr 2018

KBR completes KPIC’s ethylene plant revamp project

KBR, Inc. has successfully completed the ethylene plant revamp...

Interviews View All

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search